July 23, 2007 — (WEB HOST INDUSTRY REVIEW) — Computer and printer manufacturer Hewlett-Packard (hp.com) announced on Monday it will buy data center automation software provider Opsware (opsware.com) for about US$1.6 billion.
HP is offering $14.25 per share in cash in a tender offer for Opsware, a 38.6 percent premium over Opsware’s closing price of $10.28 on Friday.
After the deal is closed, Opsware will turn into HP’s software business, says HP, helping to increase the size of its business technology optimization software portfolio.
The company says it plans to name Opsware CEO Ben Horowitz as head of its business technology optimization group once the deal is completed. The acquisition is expected to be completed before the end of its fourth fiscal quarter.
Opsware announced last month that financial electronic commerce solution provider CheckFree has selected its automation software to meet stringent Information Technology Infrastructure Library requirements while broadening the depth of its automation infrastructure.
